ZIMBABWE’S National Indigenisation and Economic Empowerment Board (NIEEB) says it will cancel operating licences of foreign-owned firms that fail to comply with the Indigenisation Act.

“Some of the serious consequences of non-compliance include cancellation or suspension of operating licences as well as payment of hefty fines,” said Kudakwashe Gwatiringa, NIEEB chief executive.

 

Gwatiringa told a press briefing in Harare Tuesday that the companies that are yet to comply with the Indigenisation Act face closure and or heavy punitive measures.

The board revealed that most of the 170 foreign owned mines have complied with the country’s empowerment regulations whilst a majority of the 700 other companies in other sectors reluctant.

However, recently, Indigenisation Minister Saviour Kasukuwere and Mines Minister Obert Mpofu told a mining indaba that government was willing to negotiate empowerment deals.

Gwatiringa said NIEEB was set to conduct a wide scale compliance audit starting this October, to determine the extent to which companies have complied with the empowerment laws.

The investigations will be done through an indigenisation compliance directorate which comprises of Kasukuwere’s indigenisation ministry officials and the Zimbabwe Republic Police.